Just when South African retailer Steinhoff thought it had sealed a long-sought acquisition in the European retail market, institutional shareholders at Poundland (PLND) - Steinhoff's target - are preparing to make life that little bit more difficult.
Activist hedge fund manager Elliott Advisors has upped its stake in the discount chain to just over 16 per cent at the time of writing. The US-based investor has a history of intervening in agreed bids, but refused to confirm whether its behaviour was motivated by seeking a higher bid price from Steinhoff. The South African group and Poundland's board had agreed a £450m deal on 13 July; the latter's shareholders would receive 222p per share, comprising a 220p cash payment and the 2p final dividend announced in the full-year results.
A heated debate over the value of the retailer could ensue. Some investors clearly feel Steinhoff has lowballed the takeover offer in light of Poundland's recent trading patterns, or even the UK's decision to leave the European Union, which has forced a number of retailers' share prices down into bargain basement territory.
